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slothrop
Joined: 03 Feb 2003
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 Posted: Sat May 26, 2012 11:07 pm Post subject: |
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Last edited by slothrop on Fri Jun 01, 2012 10:52 pm; edited 1 time in total |
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jaykimf
Joined: 24 Apr 2004
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| Posted: Sun May 27, 2012 10:32 am Post subject: |
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| slothrop wrote: |
http://seekingalpha.com/article/316261-is-paper-gold-a-safe-investment
Is Paper Gold A Safe Investment?
One final question to ask yourself, how realistic is the current price of Gold?
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Is real Gold a safe investment?
| Quote: |
In his book Basic Economics, Thomas Sowell[60] argued that, in the long-term, gold's high volatility when compared to stocks and bonds, means that gold does not hold its value compared to stocks and bonds:
To take an extreme example [of price volatility], while dollar invested in bonds in 1801 would be worth nearly a thousand dollars by 1998, a dollar invested in stocks that same year would be worth more than half a million dollars. All this is in real terms, taking inflation into account. Meanwhile, a dollar invested in gold in 1801 would by 1998 be worth just 78 cents. |
http://en.wikipedia.org/wiki/Gold_as_an_investment |
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slothrop
Joined: 03 Feb 2003
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| Posted: Sun May 27, 2012 11:06 am Post subject: |
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Last edited by slothrop on Fri Jun 01, 2012 10:55 pm; edited 1 time in total |
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jaykimf
Joined: 24 Apr 2004
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| Posted: Sun May 27, 2012 12:07 pm Post subject: |
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| slothrop wrote: |
| jaykimf wrote: |
| slothrop wrote: |
http://seekingalpha.com/article/316261-is-paper-gold-a-safe-investment
Is Paper Gold A Safe Investment?
One final question to ask yourself, how realistic is the current price of Gold?
|
Is real Gold a safe investment?
| Quote: |
In his book Basic Economics, Thomas Sowell[60] argued that, in the long-term, gold's high volatility when compared to stocks and bonds, means that gold does not hold its value compared to stocks and bonds:
To take an extreme example [of price volatility], while dollar invested in bonds in 1801 would be worth nearly a thousand dollars by 1998, a dollar invested in stocks that same year would be worth more than half a million dollars. All this is in real terms, taking inflation into account. Meanwhile, a dollar invested in gold in 1801 would by 1998 be worth just 78 cents. |
http://en.wikipedia.org/wiki/Gold_as_an_investment |
almost all of that half a million in stocks was made in the last 15 years, from 1983-1998.
http://www.nyse.tv/djia-chart-history.htm
the first years of the bubble we are still in? how'd that work out for japan? and more importantly that guy who invested the dollar in 1801 is long since dead along with his grandkid's grandkids.LOL they would have lost it all in 1932 anyway.
http://stockcharts.com/freecharts/historical/djia19201940.html
did someone mention japan? if you invested a 100 dollars in the Nikkei in 1990, you'd now only have 25 bucks. but at least you might still be alive to spend it.
http://www.forecast-chart.com/historical-nikkei-225.html
all investments are a scam. whatever you think you've got figured out, they've already factored that into the long con. the only things worth investing in are your mind and a place to live that you yourself want to occupy, and then only if you can pay cash up front, and property taxes are less than rent would be. if you can't swing that, then invest it all in your mind. that's the black swan. |
Your first chart ignores the years from 1801 to 1931 so it simply does not logically support the claim you make. Your second chart clearly shows that the Dow was higher in 1940 than it was in 1920, so you would not have lost everything in 1932 unless you had bad timing. Your logic clearly is questionable. As for your investment advice, to put it politely as possible, I will not be following it. |
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